Wells Fargo analyst Matthew Akers says early details on the U.S. government’s fiscal 2026 budget request imply Department of Defense spending above expectations and higher than what is currently priced into the stocks. Bloomberg reports the Trump administration will release a “skinny” version of its fiscal 2026 defense budget today, the analyst tells investors in a research note. Wells notes the Department of Defense’s top line is clarified at $961B, a 13% year-over-year increase, although this includes some reconciliation bill funds. Assuming $50B of reconciliation included would imply 7% growth and up 4% versus the fiscal 2026 level assumed in last year’s long-term budget outlook the firm adds. “The top-line number is likely a big win for defense stocks today,” contends Wells. Publicly traded companies in the defense space include BAE Systems (BAESY), Boeing (BA), General Dynamics (GD), HII (HII), L3Harris Technologies (LHX), Lockheed Martin (LMT), Northrop Grumman (NOC) and RTX (RTX).
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